COVID-19: Resurgence Wage Subsidy
August 17, 2020
The recent community outbreak that has had Auckland return to Alert level 3 has prompted the Government to extend the wage subsidy scheme once more. This extension, referred to as The Resurgence Wage Subsidy, provides a 2 week payment per employee for businesses that experience, or forecast, a 40% decline in revenue for a 14 day period between 12 August and 10 September when compared to a similar period last year.
Applications for the Resurgence Wage Subsidy can be made from 1 pm on 21 August 2020 to 3 September 2020. The weekly payment rates are as per previous wage subsidies - $585.80 per full time employee (20 hours plus a week) and $350 for a part-time employee (less than 20 hours a week).
Employers (which includes the self-employed) can only receive one COVID 19 payment per employee at a time and will therefore not be able to apply for the Resurgence Wage Subsidy until the expiry of their 12 week Wage Subsidy, their 8 Wage Subsidy Extension or their Leave Support Scheme payment.
Refer to https://www.workandincome.govt.nz/covid-19/resurgence-wage-subsidy/index.html for further details.
It is noted that applications for the Wage Subsidy Extension (the first extension to the original subsidy) close 1 September 2020. The Wage Subsidy Extension provides a lump sum payment covering 8 weeks per employee. Given the increase in alert levels and the impacts of this, employers should consider their eligibility for the Wage Subsidy Extension prior to applying for the Resurgence Wage Subsidy.
Author: Sheelagh McLeay
Campbell Tyson Limited